Bridget McKenzie (Victoria, National Party, Minister for Regional Services) Share this | Hansard source

I would like to update Senator Hinch with some answers to questions I took on notice. My advice from the Deputy Prime Minister is the port of Portland is Victoria's third largest grain port by tonnage and the world's largest exporter of woodchip. The line carries 500,000 tonnes of freight each year and provides direct connection to the port of Portland. However, the success of this line depends on the condition of the network that supports it. That's why the Australian government is taking a long-term approach to rail investment in the region by investing over $240 million to upgrade, standardise and reopen the lines across the Murray Basin. This investment is an important first step to ensure freight can be moved efficiently across the north-west of Victoria before being transported to Portland.

Projects in the region need to be well sequenced to maximise industry and employment benefits and reduce network disruption and construction costs. Our immediate priority is to complete upgrades in the Murray Basin. This work is underway and is expected to be completed by 2020.

The Australian government will continue to review freight demand in the region and discuss with stakeholders the potential merit of upgrading the line to Portland. The Australian government is aware of interest in upgrading the line from Portland to Maroona, but the upgrade of the line to Portland was not included in the scope of the Murray basin freight rail upgrade as developed by the Victorian government. The rail line is currently leased to the ARTC, who operate it on a commercial basis, and they've advised that, while the upgrade has merits, they are unable to fund it on a commercial basis, as the capital and maintenance costs will outweigh the expected revenue.

Any decision to upgrade the line to Portland will need to be made with the support of the Victorian government. In the meantime, the government is prioritising the Murray basin freight rail upgrade as the most important project to be brought to completion. Doing so will ensure the appropriate sequencing of rail projects across the region and maximise the benefits to industry, and this will also give additional time for the ARTC to consider the commercial viability of the upgrade.